Discover the Benefits of Working Through Your Community Foundation
|
Community Foundation Donor Advised Fund |
Private Foundation |
Donor Involvement |
Donor recommends grants to qualified
nonprofit groups. Grants are approved by
community foundation board of directors. |
Donor appoints board, which controls
investments and grantmaking. |
Tax Status |
Public charity. |
Public charity. |
Income Tax Deductions
for Gifts of: |
|
|
Cash |
Up to 50% of adjusted gross income. |
Up to 30% of adjusted gross income. |
Appreciated stock |
Fair market value up to 30% of adjusted
gross income. |
Fair market value up 20% of adjusted
gross income. |
Real estate and
closely held stock |
Fair market value up to 30% of adjusted
gross income. |
Cost basis up to 20% adjusted gross
income. |
Grantmaking Support |
Professional staff is available to help
identify and assess grantees, provide input
on community needs, and verify nonprofit
status of groups. |
Donors must arrange and support their own
grantmaking and monitoring structure. |
Start-up Costs |
|
|
Initial costs |
None. |
Several thousand dollars for legal and
accounting expenses and filing fees. |
Minimum contribution |
$10,000 payable over four-years. |
Typically millions of dollars. |
Administrative
Requirements |
|
|
Ongoing costs |
Pooled administration; annual fee. |
Several thousand dollars for legal and
accounting expenses and filing fees. |
Reporting |
Community Foundation handles reporting. |
Annual 990 tax form must be filed. |
Comparing Two Approaches of Giving
Items to consider
when establishing a
fund.
Should I Start my Own Foundation?
If you have less than $10 million, a community foundation is usually a more efficient and economically effective option. Other perks: Greater tax advantages and less administrative work.
What is an endowment? When you create a charitable fund through your community foundation, you have the opportunity to benefit the community forever with a permanent endowment. Your gift is invested over time. Earnings from your fund are used to make grants addressing community needs. Your gift—and all future earnings from your gift—is a permanent source of community capital, helping do good work today and in the future.
To learn more about the advantages of working through the Foundation, please click here [PDF].